The Taxpayer Advocate's 2013 Report

by Professor Ann Murphy, Gonzaga Law School * Taxpayer Advocate Nina Olson issued her 2013 Annual Report to Congress for 2013 on December 31, 2013. As required by statute, she once again lists the Most Serious Problems Encountered by Taxpayers, Legislative Recommendations, and the Ten Most Litigated...

IRS Notice Provides Bitcoin Transaction Tax Guidance

In March, the IRS issued Notice 2014-21, 2014 IRB LEXIS 238 (March 25, 2014) , providing guidance, in the form of FAQs, on the application of general tax principles to transactions involving virtual currency, such as bitcoins. Q&A 1 of the notice provides the general rule that for federal taxation...

Daniel G. Mudd on Federal & State Tobacco Taxes

by Daniel G. Mudd * [1] Introduction For those in the business, manufacturers, wholesalers, distributors, importers, dealers and retailers of tobacco products, there are a staggering amount of Federal and state excise tax compliance obligations and responsibilities that must be fully considered prior...

Politically Exposed Persons (PEPs)

By Prof. William H. Byrnes IV and Dr. Robert J. Munro * Editor's Note: The following is an excerpt from the e-book only title, Money Laundering, Asset Forfeiture and Recovery and Compliance -- A Global Guide , by William Byrnes and Robert Munro. Chapter contributor: Ashley Paulson, Thomas Jefferson...

Estate and Trust Costs Subject to 2-Percent Floor

For estates and trusts, IRC Section 67 generally allows "miscellaneous itemized deductions" to be accounted for in computing taxable income only to the extent that in the aggregate these deductions exceed 2 percent of adjusted gross income. IRC 67(e) and 2007 proposed regulations had provided...

NYU Tax Controversy Forum

NYU Tax Controversy Forum Date: June 20, 2014 Location: The Crowne Plaza Times Square Manhattan, New York, NY The annual NYU Tax Controversy Forum features interactive presentations delivered by expert practitioners who cover a broad range of issues regarding tax audits and tax litigation at...

Booker Variances are More Common in Tax Crimes. Why? And Do They Disproportionately Benefit the Rich?

Readers of this blog should be familiar with the name Ty Warner. He is the billionaire who cheated on his U.S. taxes big time (the financially big can cheat big) and, in addition, willfully failed to file the FBARs. He pled guilty to a reduced set of charges. He was sentenced to no incarceration. The...

When Worlds Collide, Pt. 2: The End of DOMA's Reign Over Same-Sex Marriage - Where Are We Now?

by Susan Calistri Boesger, J.D., LL.M * The Decision: U.S. v. Windsor On June 26, 2013, the United States Supreme Court issued a 5-4 decision in United States v. Windsor, 133 S. Ct. 2675 (U.S. 2013) , which declared Section 3 of the Defense of Marriage Act (DOMA, 1 USC § 7) unconstitutional...

U.S. Tax Implications and Considerations for Gift Transfers by Nonresidents

Introduction In the absence of proper tax planning, making a gift may lead to disastrous results when the donor is a foreign person (nonresident alien) and is residing in a country that does not have the same concept of gift tax that exists under the Internal Revenue Code... ... [There are] important...

The New Frontier Under the Final Repair Regulations

by Bradley R. Marsh and Jeremiah Coder Introduction The release last fall of final regulations concerning the deduction and capitalization of expenses related to tangible personal property, along with several pieces of follow-up administrative guidance, has created a remarkable new framework for...

NYU Summer Institute in Taxation

Dates: July 14-25, 2014 Location: The Westin New York at Times Square New York, NY Join today's leading national and international tax authorities during a series of in-depth sessions on state and local taxation, partnerships, consolidated returns, trusts and estates, federal wealth tax, and...

Voluntary Tax Return Preparer Certification in Wake of Loving v. IRS

Loving v. IRS In February 2014, the D.C. Circuit of the U.S. Court of Appeals issued its decision in Loving v. IRS , 742 F.3d 1013 (D.C. Cir. 2014) , regarding the IRS’ authority to license tax return preparers. The D.C. Circuit upheld the decision of the lower court ( Loving v. IRS , 917 F...

IRS Transfer Pricing Audit Roadmap's Potential Impact on U.S. Taxpayers

by Barry Shott, Richard Barrett, Elizabeth Sweigart and Shwetal Shah * Summary. Improved cooperation, collaboration, and transparency continue to be key themes of the message from the Internal Revenue Service ("IRS") for both its own practitioners and the tax community. In another sign of...

Sealing an Indictment Pending Arrest in Tax Cases

I just saw this interesting case involving a lawyer indicted for tax obstruction, Section 7212(a), [ enhanced version available to lexis.com subscribers ]. The case is United States v. McBride , 2014 U.S. Dist. LEXIS 89455 (D. MA 2014), here . The count of the indictment, Section 7212(a), is here . This...

Attorney Sentence Properly Considered Attorney Status and Deterrence in Tax Cases

In United States v. McCord , 2014 U.S. Dist. LEXIS 86436 (SD OH 6/25/14), [ enhanced version available to lexis.com subscribers ], the defendant, an attorney, was sentenced by a Magistrate Judge to 60-days incarceration and 1-year of supervised release. The defendant appealed to the District Judge, alleging...

Court of Appeals Rejects Arguments that Instructions on Willfulness and Good Faith Were Reversible Error

In United States v. Basile , 2014 U.S. App. 12388 (3d Cir. 2014), here , the defendants, husband and wife, chiropractors, engaged an asset protection firm who put them into offshore entities and bank accounts to avoid tax. The defendants took other actions to obscure their income and avoid tax. The defendants...

Part II: Federal and State Tobacco Taxes -- On Fire or Just Smoking?

by Daniel G. Mudd * In a follow-up to Part I (EIA 7184) [ "Basics of Federal and State Tobacco Taxes -- On Fire or Just Smoking?" by Daniel G. Mudd – Emerging Issues Analysis Commentary], which covered the Federal Excise Tax (FET) considerations for a company involved in the tobacco...

Ongoing Intrigue: Self-Employment Tax, Limited Partners, and LLCs

On so many fronts, understanding federal tax discipline, and complying with its tenets, is a daunting challenge. Taxpayers with the best intentions, and the practitioners who serve them, face frequent 'head scratchers' in their concerted efforts to apply the IRC, regulations, and judicial authority...

Message to Treasury: Flex Your Muscles! Who Needs Lawmakers?

In today's political environment, there's no shortage of frustration over the virtual absence of substantive legislation coming out of Congress. The federal tax arena is no exception, of course. And what better target to focus on nowadays than big bad corporations who have the audacity to navigate...

View all the federal, state and international tax news headlines for September 17th from TaxAnalysts® on LexisNexis Tax Center

View all the federal tax news headlines for September 17th from TaxAnalysts® on LexisNexis Tax Center View all the state tax news headlines for September 17th from TaxAnalysts® on LexisNexis Tax Center View all the international tax news headlines for September 17th from TaxAnalysts®...

Appeals Court Reverses Art Valuation Decision

The Tax Court erred in applying only a nominal 10 percent discount to a deceased collector's interests in an art collection valued at over $ 35 million, the Fifth Circuit held on September 15, ordering the IRS to refund the estate $ 14.4 million for taxes overpaid. In Estate of James A. Elkins Jr...

View all the federal, state and international tax news headlines for September 18th from TaxAnalysts® on LexisNexis Tax Center

View all the federal tax news headlines for September 18th from TaxAnalysts® on LexisNexis Tax Center View all the state tax news headlines for September 18th from TaxAnalysts® on LexisNexis Tax Center View all the international tax news headlines for September 18th from TaxAnalysts®...

Tax Court Allows Predictive Coding in E-Discovery

Taxpayers may now use predictive coding when responding to IRS document requests, the Tax Court held in a September 17 opinion regarding a motion to compel documents. Judge Ronald L. Buch said in Dynamo Holdings LP v. Commissioner , 143 T.C. No. 9, that the court finds a "happy medium in petitioners'...

View all the federal, state and international tax news headlines for September 19th from TaxAnalysts® on LexisNexis Tax Center

View all the federal tax news headlines for September 19th from TaxAnalysts® on LexisNexis Tax Center View all the state tax news headlines for September 19th from TaxAnalysts® on LexisNexis Tax Center View all the international tax news headlines for September 19th from TaxAnalysts®...

Extension of IRS Funding and Internet Tax Ban Clears Congress

The Senate September 18 passed on a 78-22 vote a continuing resolution that would extend through December 11 current government funding, including for the IRS, as well as a ban on state and local Internet access taxation. President Obama is expected to sign the measure (H.J. Res. 124), which the House...